What is greenwashing and why you should care
In June 2022 the Australian Securities and Investments Commission (ASIC) published Information Sheet 271 (INFO 271) How to avoid greenwashing when offering or promoting sustainability-related products. It emphasised that, while the information sheet focuses on sustainability-related products issued by funds, its principles may apply to other entities that offer or promote financial products that take into account sustainability-related considerations.
More recently on 28 March 2024 ASIC celebrated its first greenwashing civil penalty action win. The Federal Court found Vanguard Investments Australia liable for contravening the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act) when it made false or misleading representations about its environmental, social and governance (ESG) exclusionary screens applied to investments in a Vanguard index fund.
“It sends a strong message to companies making sustainable investment claims that they need to reflect the true position,” said ASIC Deputy Chair Sarah Court of the decision in the case, Australian Securities and Investments Commission v Vanguard Investments Australia Ltd [2024] FCA 308.
To read the full article on Thomson Reuters' Legal Insight please click here.
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Cassandra is an experienced Senior Content Manager in the Analytical Law Team at Thomson Reuters with a history of over 30 years working in the information services industry after leaving practice in the Banking and Finance sector. She holds a Bachelor of Law from Sydney University. At Thomson Reuters, she has worked in areas including writing for Industrial Relations and Anti-Money Laundering publications, undertaken extensive indexing of both new and updated publications, commissioning across the Team’s portfolio and edited a wide range of works.